Perth-based explorer Conico (ASX:CNJ) is on track to complete a scoping study for the Mt Thirsty Cobalt-Nickel-Manganese-Scandium Joint Venture (JV) in Western Australia in 2023.
The company reports independent consultants Simulus and WSP Australia have been engaged to undertake the Scoping Study at the project. This study is expected to be completed in July and will incorporate new assays received from the last 5 reverse circulation (RC) pre-collars completed in late 2022 as part of a phase one drilling program.
‘Significant’ drill results include hole MTRC005D with 48m @ 0.08% Co, 0.44% Ni, 0.13% Mn, and 47.6g/t Sc from 2m, including 6m @ 0.14% Co, 0.62% Ni, 0.85% Mn, and 57.4g/t Sc from 5m; and MTRC006D with 70m @ 0.05% Co, 0.45% Ni, 0.47% Mn, and 36.3g/t Sc from 3m, including 26m @ 0.11% Co, 0.59% Ni, 1.06% Mn, and 28.2g/t Sc from 47m.
Conico reports the phase one drilling campaign utilised both RC and diamond drilling that allowed the holes to be extended to an average depth of around 350m below surface, which is ‘significantly’ deeper than the historical aircore (AC) drilling methods previously used at Mt Thirsty.
Due to the historical AC drilling, the company says ‘large’ areas beneath and adjacent to the existing resource still remain untested and provide the potential for cobalt-nickel-manganese resource additions.
Additionally, these latest results largely sit outside the current resource envelope, with recent drilling lying 100m east of the resource. The company says this highlights the unrealised growth potential further to the east.
Commenting on the results, Conico Executive Director Guy Le Page says: “The latest drilling results continue to highlight the potential of Mt Thirsty to provide a low-cost, ethical, and sustainable source of cobalt and nickel outside of the Democratic Republic of Congo and Russia. Significantly, the majority of these results remain outside the recently published Mineral Resource Estimate (MRE) and present an opportunity for further resource growth and potentially mine life extensions.
“The Mt Thirsty Project is uniquely positioned to support the continued decarbonisation of our economy”
The Mt Thirsty Project is uniquely positioned to support the continued decarbonisation of our economy — not only containing cobalt and nickel but also hosting manganese and scandium, allowing the project to potentially produce a high-value precursor cathode active material (pCAM) product.
We are entering into a transformational phase for the Mt Thirsty Project, with metallurgical studies progressing that will feed into a Scoping Study that is expected to be completed in July.”
Conico expects the Scoping Study will leverage off a materially larger resource and will provide the foundation for a potential ownership consolidation and initial public offering (IPO) of the Mt Thirsty Project later this year. This will be followed by a pre-feasibility study (PFS), which aims to explore the supply of a ‘low-cost’, ethical, and sustainable source of cobalt and nickel outside of the Democratic Republic of the Congo and Russia.
Conico is a Perth-based exploration company with assets in Scandinavia and Australia. The company’s portfolio includes the Ryberg and Mestersvig projects in Greenland, as well as Mt Thirsty in Western Australia.
The Mt Thirsty JV is split equally by Conico and Greenstone Resources (ASX:GSR) and lies 16km north-northwest of Norseman in Western Australia. The project hosts a current resource of 66.2 million tonnes @ 0.06% Co, 0.43% Ni, and 0.45% Mn.
Write to Harry Mulholland at Mining.com.au
Images: Conico Ltd
